If the planet has huge problems – its temperature has warmed up to ice-cap-melting levels and its accelerating loss of animal and plant species has been described as a sixth mass extinction – it also potentially has significant resources to devote to these problems. To stave off both the climate and biodiversity crises requires a level of international cooperation unprecedented in the history of the world. And yet financial markets are more connected than they have ever been and more motivated to bring about change. Globally, we have the means and resources to massively reduce poverty and hunger, using methods that will also be good for the environment.
ESG is part of the solution – a mechanism for directing capital to achieve environmental, social and economic improvement, while ensuring the returns that make markets function and have an impact on humanity.
The FII Institute has argued since 2019 that ESG, as most commonly interpreted, does not target investment efficiently at emerging economies. Now we offer a pathway forward. Our inclusive ESG initiative SHOULD help to bring emerging markets to the attention of investors, unlocking some of the vast resources that will be needed to transition to a just and low carbon world.
Let’s invest in humanity!
Richard Attias
CEO FII Institute
ESG: A Driving Force in Today’s Business World
Environmental, Social, and Governance (ESG) investing has become one of the most important forces in global business today, with ESG assets estimated to reach USD $53 trillion by 2025, comprising a third of the global AUM. While new frameworks and rating mechanisms continue to emerge, there are still many outstanding questions about how to effectively implement ESG in emerging markets each with their own specific economic, social, and cultural dynamics. With that in mind, the Future Investment Initiative (FII) Institute has convened a community of Global Heads of Sustainability, ESG, and Stewardship; CEOs; government officials; social innovators; next gen leaders and thought leaders; and other experts to work jointly on developing a more direct and robust roadmap for the future of ESG, particularly in emerging markets.
Vital conversations and discussions have been initiated, all united to achieve one goal: shape the future of the global ESG agenda, and support investors with the tools and knowledge to drive sustainable and alpha generating investment strategies.
